P1-B performance fund to drive LGU excellence
Friday 6th of September 2013
MANILA, Sept 6 -- The Department of Budget and Management (DBM) announced the release of P1.0 billion to the Department of Interior and Local Government (DILG) to support the Performance Challenge Fund (PCF), a financial subsidy program that recognizes and rewards the improved delivery of public services and better governance among local government units (LGUs).
The P1-billion release will cover the payment of financial subsidies for well-performing LGU-beneficiaries. The amount is also the total allocation set for the PCF for FY 2013.
"The Aquino administration started the PCF to encourage LGUs to improve the way they deliver goods and services to their constituents, primarily through the alignment of their local projects with the Administration's own socio-economic development priorities. At the same time, PCF-supported programs should also promote governance reforms that enhance transparency, accountability, and openness in the way our LGUs work," DBM Secretary Florencio "Butch" Abad said.
The PCF can subsidize up to P7 million for each province, P3 million for each city and P1 million for every municipality with priority given to less-able LGUs.
LGU projects that qualify for PCF subsidies include those that will help the country attain its Millennium Development Goals, as well as initiatives that will facilitate economic development in each LGU. Projects that address climate change management and disaster preparedness are also qualified for the PCF.
At the local level, the PCF may be used as subsidies for major projects under a particular LGU. It can also be tapped as counterpart funding for foreign-assisted projects under LGUs, and may also serve as co-financing for a local government's joint projects with other LGUs. The PCF can also act as counterpart funding for projects that an LGU may undertake jointly with the private sector.
According to Abad, a crucial requirement for determining an LGU's eligibility to the PCF is its ability to secure the Seal of Good Housekeeping. The DILG confers this to local governments that have shown great progress in instituting governance reforms, particularly with respect to transparency, accountability, planning, fiscal management and performance monitoring.
The DBM confirmed that 1,365 LGUs out of the 1,590 assessed by DILG passed the Seal of Good Housekeeping.
"If we want to institutionalize reforms, we need to take a close look at how government is performing at the local level. Do our local governments effectively address the needs of their constituents? Are we able to provide public goods and services with utmost efficiency? Do our governance reforms produce real, direct, and long-term benefits for our communities? These are the questions that the PCF poses to each LGU, with the aim of rewarding good performance and creating a culture of excellence among our local governments," Abad said. (DBM) - See more at: http://news.pia.gov.ph/index.php?article=2131378367613#sthash.Kpo2kaPr.dpuf
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